8-K
BlueLinx Holdings Inc. (BXC)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 21, 2023
BlueLinx Holdings Inc.
(Exact name of registrant specified in its charter)
| Delaware | 001-32383 | 77-0627356 |
|---|---|---|
| (State or other | (Commission | (I.R.S. Employer |
| jurisdiction of<br>incorporation) | File Number) | Identification No.) |
| 1950 Spectrum Circle, Suite 300, Marietta, Georgia | 30067 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (770) 953-7000
_________________________________________________
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.01 per share | BXC | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 under the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On February 21, 2023, BlueLinx Holdings Inc. ("BlueLinx" or "the Company”) issued a press release announcing its financial results for the fiscal fourth quarter and year ended December 31, 2022. A copy of BlueLinx's press release is furnished as Exhibit 99.1 hereto.
On February 22, 2023, as previously announced, BlueLinx will hold a teleconference and audio webcast to discuss its financial results from the fiscal fourth quarter and year ended December 31, 2022. A copy of supplementary materials that will be referred to in the teleconference and webcast, and which will be posted to the Company's website, is furnished as Exhibit 99.2 hereto.
The information included in this Item 2.02, as well as Exhibits 99.1 and 99.2, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:
The following exhibits are attached with this Current Report on Form 8-K:
| Exhibit No. | Exhibit Description |
|---|---|
| 99.1 | Press Release dated February 21, 2023 reporting financial results for fiscal fourth quarter and year ended December 31, 2022 |
| 99.2 | Supplementary materials to be used during webcast conference call on February 22, 2023 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BlueLinx Holdings Inc. | ||
|---|---|---|
| (Registrant) | ||
| Dated: February 21, 2023 | By: | /s/ Kelly C. Janzen |
| Kelly C. Janzen | ||
| Senior Vice President and Chief Financial Officer |
Document
Exhibit 99.1
BlueLinx Announces Fourth Quarter and Full Year 2022 Results
MARIETTA, GA, February 21, 2023 – BlueLinx Holdings Inc. (NYSE: BXC), a leading U.S. wholesale distributor of building products, today reported financial results for the three months and twelve months ended December 31, 2022.
FOURTH QUARTER 2022 HIGHLIGHTS
(all comparisons are versus the prior year period unless otherwise noted)
•Net sales of $848 million, a decrease of $125 million
•Gross profit of $151 million, gross margin of 17.8% and specialty margin of 21.1%
•Net income of $32 million, or $3.50 diluted earnings per share
•Adjusted net income of $36 million, or $3.97 adjusted diluted earnings per share
•Adjusted EBITDA of $63 million, 7.4% of net sales
•Operating cash of $154 million and free cash flow of $137 million
•Available liquidity increased to $645 million, including $299 million cash on hand
•Acquired Vandermeer Forest Products on October 3, 2022, for $67 million
FULL YEAR 2022 HIGHLIGHTS
(all comparisons are versus the prior year period unless otherwise noted)
•Net sales of $4.5 billion, an increase of 4%
•Gross profit increased 7% to $833 million and gross margin increased 50 basis points to 18.7%
•Net income of $296 million, or $31.51 diluted earnings per share
•Adjusted net income of $306 million, or $32.55 adjusted diluted earnings per share
•Adjusted EBITDA increased 3% to an all-time high of $478 million, or 10.7% of net sales
•Record cash flow including $400 million of operating cash flow and $364 million of free cash flow
“Our fourth quarter and full year 2022 were highlighted by strong margin performance and record operating cash flow, demonstrating our ability to generate solid results despite more challenging macro conditions,” stated Dwight Gibson, President, and CEO of BlueLinx. “We continue to strengthen our financial position through robust cash generation, increasing our available liquidity. Throughout 2022, we allocated approximately $170 million of capital towards the acquisition of Vandermeer, capital expenditures that improved the effectiveness of our facilities and our fleet, and share repurchases.”
“Increasing interest rates have significantly slowed new residential construction and to a lesser extent, repair and remodel activity” continued Gibson. “We saw a meaningful deceleration in the demand for building products as the fourth quarter progressed and despite this, we delivered solid results. As we navigate this challenging cycle, our fortress balance sheet provides opportunities to further execute on our strategy.”
“Throughout 2023 we expect that sales volumes and margins will continue to be adversely impacted. Consistent with our actions in 2022, we will continue to drive rigor around pricing and emphasize operational excellence across our business, while adjusting costs as necessary. We will also maintain our disciplined approach to capital allocation to generate shareholder returns,” concluded Gibson.
FOURTH QUARTER 2022 FINANCIAL PERFORMANCE
In the fourth quarter of 2022, net sales were $848 million, a decrease of $125 million, or 13% when compared to the fourth quarter of 2021. Gross profit was $151 million, a decrease of $42 million, or 22%, year-over-year, and gross margin was 17.8%, down 210 basis points from the same period last year.
Net sales of specialty products, which includes products such as engineered wood, siding, millwork, outdoor living, industrial products and specialty lumber and panels, decreased $50 million, or 8%, to $592 million. This decline was primarily due to lower volume. Gross profit from specialty product sales was $125 million, a decrease of $16 million, or 11%, compared to the fourth quarter last year. Gross margin was 21.1% compared to 21.9% in the prior year period.
Net sales of structural products, which includes products such as lumber, plywood, oriented strand board, rebar, and remesh, decreased $75 million, or 23%, to $256 million in the fourth quarter and gross profit from sales of structural products decreased $27 million from $53 million in the prior year period. The decrease in structural sales and gross profit was due primarily to the year-over-year declines in the average composite price of framing lumber and structural panels, 36% and 26% respectively, in addition to lower volumes. Gross margin on structural product sales was 10.4% in the fourth quarter, down from 16.1% in the prior year period.
Selling, general and administrative (“SG&A”) expenses were $92 million in the fourth quarter, flat versus the third quarter of 2022 and $9 million, or 10%, higher than the prior year period. The year-over-year increase in SG&A was due primarily to investments in the Company’s workforce during the year, increased delivery costs and the inclusion of costs related to Vandermeer.
Net income was $32 million, or $3.50 per diluted share, versus $74 million, or $7.30 per diluted share, in the prior year period. Adjusted Net Income was $36 million, or $3.97 per diluted share. As a result of lower shares outstanding due to the Company’s share repurchases in 2022, earnings of $3.50 per diluted share included a $0.31 per share benefit and adjusted earnings of $3.97 per diluted share included a $0.35 per share benefit.
Adjusted EBITDA was $63 million, or 7.4% of net sales, as compared to $112 million, or 11.5% of net sales in the prior period.
Net cash generated from operating activities was $154 million in the fourth quarter of 2022 compared to $18 million in the prior year period. The increase in cash generated from operating activities was driven by a net benefit from working capital, specifically a $122 million reduction in accounts receivable and a $68 million reduction in inventory. Free cash flow was $137 million in the fourth quarter of 2022, up $128 million compared to the prior year period. We allocated $16.8 million to cash capital investments related to both distribution facilities and our fleet during the quarter.
FULL YEAR 2022 FINANCIAL PERFORMANCE
For the twelve months ended December 31, 2022, net sales were $4.5 billion, an increase of $173 million, or 4% year-over-year. Gross profit was $833 million, an increase of $55 million, or 7%, year-over-year, and gross margin was 18.7%, up 50 basis points. The increase in sales and gross profit reflects 14% growth in specialty product sales and a 10% decline in structural product sales.
Net sales of specialty products increased $351 million, or 14%, to $2.9 billion in the twelve months ended December 31, 2022. This growth was primarily driven by strategic pricing actions slightly offset by lower volumes. Gross profit from specialty product sales was $640 million, an increase of $79 million, or 14%, year-over-year and gross margin was 22.3%, consistent with the prior year period.
Net sales of structural products decreased $178 million, or 10%, to $1.6 billion in the twelve months ended December 31, 2022, and gross profit from sales of structural products decreased $24 million to $193 million. The decrease in structural sales and gross profit was due primarily to a decrease in the average composite price of framing lumber and structural panels year-over-year in addition to lower volumes. Gross margin on structural product sales was 12.2%, relatively consistent with the prior year period.
SG&A expenses were $366 million during fiscal year 2022, up $44 million, or 14%, when compared to the prior year period. The year-over-year increase in SG&A was due primarily to higher delivery costs resulting from increases in fuel prices and variable compensation, along with strategic investments in the Company’s workforce.
Net income was $296 million, or $31.51 per diluted share, versus $296 million, or $29.99 per diluted share in the prior year. Adjusted net income was $306 million and Adjusted earnings per share was $32.55 in the current year. As a result of lower shares outstanding due to the Company’s share repurchases in 2022, earnings of $31.51 per diluted share included a $1.60 per share benefit and adjusted earnings of $32.55 per diluted share included a $1.65 per share benefit.
Adjusted EBITDA was $478 million, or 10.7% of net sales, as compared to $464 million, or 10.8% of net sales in 2021.
Net cash generated from operating activities was $400 million for fiscal year 2022 compared to $145 million in fiscal year 2021. This was driven by a net benefit from working capital. Free cash flow was $364 million for fiscal year 2022 compared to $131 million in the prior year period.
CAPITAL ALLOCATION AND FINANCIAL POSITION
During the full year 2022 we allocated $169 million of cash including $67 million for the acquisition of Vandermeer, which occurred in the fourth quarter. $36 million was invested in cash capital investments used to improve our distribution facilities and upgrade our fleet, an increase of $21 million when compared to fiscal 2021. $66 million was allocated to buy back
approximately 9% of our stock, $60 million of which was done through an accelerated share repurchase program that was completed in the third quarter of 2022. Currently, we have $34 million remaining under our share repurchase authorization.
As of December 31, 2022, total debt was $573 million, including $300 million of senior secured notes that mature in 2029 and $273 million of finance leases. Available liquidity was $645 million which included an undrawn revolving credit facility that had $346 million of availability plus cash and cash equivalents of $299 million. Net debt was $274 million, resulting in a net leverage ratio of 0.6x on trailing twelve-month adjusted EBITDA of $478 million.
FIRST QUARTER 2023 UPDATE
Through the first seven weeks of the first quarter of 2023, specialty product gross margin was in the range of 18% to 19% with daily sales volumes down approximately 15% versus the prior year reflecting the challenging macro environment. Structural product gross margin was in the range of 10% to 11% with relatively consistent sales volumes when compared to last year. The Company will continue to evaluate market pricing for wood-based commodities and adjust accordingly at the end of each period.
CONFERENCE CALL INFORMATION
BlueLinx will host a conference call on February 22, 2023, at 10:00 a.m. Eastern Time, accompanied by a supporting slide presentation.
A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of the BlueLinx website at https://investors.bluelinxco.com/events-and-presentations/default.aspx, and a replay of the webcast will be available at the same site shortly after the webcast is complete.
To participate in the live teleconference:
Domestic Live: 1-877-407-4018
Passcode: 13735176
To listen to a replay of the teleconference, which will be available through March 8, 2023:
Domestic Replay: 1-844-512-2921
Passcode: 13735176
ABOUT BLUELINX
BlueLinx (NYSE: BXC) is a leading U.S. wholesale distributor of residential and commercial building products with both branded and private-label SKUs across product categories such as lumber, panels, engineered wood, siding, millwork, and industrial products. With a strong market position, broad geographic coverage footprint servicing 50 states, and the strength of a locally focused sales force, we distribute our comprehensive range of products to approximately 15,000 customers including national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers and industrial manufacturers. BlueLinx provides a wide range of value-added services and solutions to our customers and suppliers. We are headquartered in Georgia, with executive offices located at 1950 Spectrum Circle, Marietta, Georgia, and we operate our distribution business through a broad network of distribution centers. BlueLinx encourages investors to visit its website, www.BlueLinxCo.com, which is updated regularly with financial and other important information about BlueLinx.
INVESTOR & MEDIA CONTACTS
Noel Ryan
(720) 778-2415
investor@bluelinxco.com
Marketing & Communications
mediarequest@bluelinxco.com
NON-GAAP MEASURES
The Company reports its financial results in accordance with GAAP. The Company also believes that presentation of certain non-GAAP measures may be useful to investors and may provide a more complete understanding of the factors and trends affecting the business than using reported GAAP results alone. Any non-GAAP measures used herein are reconciled to their most directly comparable GAAP measures herein or in the financial tables accompanying this news release. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. The Company further cautions that its non-GAAP measures, as used herein, are not necessarily comparable to other similarly titled measures of other companies due to differences in methods of calculation.
Adjusted EBITDA and Adjusted EBITDA Margin. BlueLinx defines Adjusted EBITDA as an amount equal to net income (loss) plus interest expense and all interest expense related items, income taxes, depreciation and amortization, and further adjusted for certain non-cash items and other special items, including compensation expense from share based compensation, one-time charges associated with the legal, consulting, and professional fees related to our merger and acquisition activities, gains or losses on sales of properties, amortization of deferred gains on real estate, and expense associated with our restructuring activities, such as severance, in addition to other significant and/or one-time, nonrecurring, non-operating items.
The Company presents Adjusted EBITDA because it is a primary measure used by management to evaluate operating performance. Management believes this metric helps to enhance investors’ overall understanding of the financial performance and cash flows of the business. Management also believes Adjusted EBITDA is helpful in highlighting operating trends. Adjusted EBITDA is frequently used by securities analysts, investors, and other interested parties in their evaluation of companies, many of which present an Adjusted EBITDA measure when reporting their results.
We determine our Adjusted EBITDA Margin, which we sometimes refer to as our Adjusted EBITDA as a percentage of net sales, by dividing our Adjusted EBITDA for the applicable period by our net sales for the applicable period. We believe that this ratio is useful to investors because it more clearly defines the quality of earnings and operational efficiency of translating sales to profitability.
Our Adjusted EBITDA and Adjusted EBITDA Margin are not presentations made in accordance with GAAP and are not intended to present superior measures of our financial condition from those measures determined under GAAP. Adjusted EBITDA and Adjusted EBITDA Margin, as used herein, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. These non-GAAP measures are reconciled in the “Reconciliation of Non-GAAP Measurements” table later in this release.
Adjusted Net Income and Adjusted Earnings Per Share. BlueLinx defines Adjusted Net Income as Net Income adjusted for certain non-cash items and other special items, including compensation expense from share based compensation, one-time charges associated with the legal, consulting, and professional fees related to our merger and acquisition activities, gains or losses on sales of properties, amortization of deferred gains on real estate, and expense associated with our restructuring activities, such as severance, in addition to other significant and/or one-time, nonrecurring, non-operating items, further adjusted for the tax impacts of such reconciling items. BlueLinx defines Adjusted Earnings Per Share (basic and/or diluted) as the Adjusted Net Income for the period divided by the weighted average outstanding shares (basic and/or diluted) for the periods presented.
We believe that Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) are useful to investors to enhance investors’ overall understanding of the financial performance of the business. Management also believes Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) are helpful in highlighting operating trends.
Our Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) are not presentations made in accordance with GAAP and are not intended to present superior measures of our financial condition from those measures determined under GAAP. Adjusted Net Income and Adjusted Earnings Per Share (basic or diluted), as used herein, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. These non-GAAP measures are reconciled in the “Reconciliation of Non-GAAP Measurements” table later in this release.
Free Cash Flow. BlueLinx defines free cash flow as net cash provided by operating activities less total capital expenditures. Free cash flow is a measure used by management to assess our financial performance, and we believe it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures that can be used for, among other things, investment in our business, strengthening our balance sheet, and repayment of our debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. Free cash flow is not a presentation made in accordance with GAAP and is not intended to present a superior measure of financial condition from those determined under GAAP. Free cash flow, as used herein, is not necessarily comparable to other similarly titled captions of other companies due to differences
in methods of calculation. This non-GAAP measure is reconciled in the “Reconciliation of Non-GAAP Measurements” table later in this release.
Net Debt and Net Leverage Ratio. BlueLinx calculates net debt as its total short- and long-term debt, including outstanding balances under our term loan and revolving credit facility and the total amount of its obligations under financing leases, less cash and cash equivalents. We believe that net debt is useful to investors because our management reviews our net debt as part of its management of overall liquidity, financial flexibility, capital structure and leverage, and creditors and credit analysts monitor our net debt as part of their assessments of our business. We determine our overall net leverage ratio by dividing our net debt by trailing twelve-month Adjusted EBITDA. We believe that this ratio is useful to investors because it is an indicator of our ability to meet our future financial obligations. In addition, the ratio is a measure that is frequently used by investors and creditors.
Our net debt and overall net leverage ratio are not presentations made in accordance with GAAP and are not intended to present a superior measure of our financial condition from measures and ratios determined under GAAP. In addition, our net debt and overall net leverage ratio, as used herein, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. This non-GAAP measure is reconciled in the “Reconciliation of Non-GAAP Measurements” table later in this release.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. Forward-looking statements include, without limitation, any statement that predicts, forecasts, indicates or implies future results, performance, liquidity levels or achievements, and may contain the words “believe,” “anticipate,” “could”, “expect,” “estimate,” “intend,” “may”, “project,” “plan,” “should”, “will”, “will be,” “will likely continue,” “will likely result””, “would” or words or phrases of similar meaning.
The forward-looking statements in this press release include statements about our confidence in the Company’s long-term growth strategy; ; our ability to capitalize on supplier-led price increases and our value-added services; our areas of focus and management initiatives; the demand outlook for construction materials and expectations regarding new home construction, repair and remodel activity and continued investment in existing and new homes; our positioning for long-term value creation; our efforts and ability to generate profitable growth; our ability to increase net sales in specialty product categories; our ability to generate profits and cash from sales of specialty products; our multi-year capital allocation plans; our ability to manage volatility in wood-based commodities; our improvement in execution and productivity; our efforts and ability to maintain a disciplined capital structure and capital allocation strategy; our ability to maintain a strong balance sheet; our ability to focus on operating improvement initiatives and commercial excellence; and whether or not the Company will continue any share repurchases.
Forward-looking statements in this press release are based on estimates and assumptions made by our management that, although believed by us to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties that may cause our business, strategy, or actual results to differ materially from the forward-looking statements. These risks and uncertainties include those discussed in greater detail in our filings with the Securities and Exchange Commission. We operate in a changing environment in which new risks can emerge from time to time. It is not possible for management to predict all of these risks, nor can it assess the extent to which any factor, or a combination of factors, may cause our business, strategy, or actual results to differ materially from those contained in forward-looking statements. Factors that may cause these differences include, among other things: inflation; pricing and product cost variability; volumes of product sold; competition; changes in the supply and/or demand for products that we distribute; the cyclical nature of the industry in which we operate; housing market conditions; consolidation among competitors, suppliers, and customers; disintermediation risk; loss of products or key suppliers and manufacturers; our dependence on international suppliers and manufacturers for certain products; potential acquisitions and the integration and completion of such acquisitions; business disruptions; effective inventory management relative to our sales volume or the prices of the products we distribute; information technology security risks and business interruption risks; the ability to attract, train, and retain highly qualified associates and other key personnel while controlling related labor costs; exposure to product liability and other claims and legal proceedings related to our business and the products we distribute; natural disasters, catastrophes, fire, wars, or other unexpected events; successful implementation of our strategy; wage increases or work stoppages by our union employees; costs imposed by federal, state, local, and other regulations; compliance costs associated with federal, state, and local environmental protection laws; the lingering effect of global pandemics such as COVID-19 and other widespread public health crisis and their effects on our industry; fluctuations in our operating results; our level of indebtedness and our ability to incur additional debt to fund future needs; the covenants of the instruments governing our indebtedness limiting the discretion of our management in operating the business; variable interest rate risk under certain indebtedness; the fact that we have consummated certain sale leaseback transactions with resulting long-term non-cancelable leases, many of which are or will be finance leases; the fact that we lease many of our distribution centers, and we would still be obligated under these leases even if we close a leased distribution center; inability to raise funds necessary to finance a required repurchase of our senior secured notes; a lowering or withdrawal of debt ratings; changes in our product mix; increases in fuel and other energy prices; availability of third-part freight providers; changes in insurance-related deductible/retention reserves based on actual loss experience; the possibility that the value of our deferred tax assets could
become impaired; changes in our expected annual effective tax rate could be volatile; changes in actuarial assumptions for our pension plan; the costs and liabilities related to our participation in multi-employer pension plans could increase; the risk that our cash flows and capital resources may be insufficient to service our existing or future indebtedness; changes in, or interpretation of, accounting principles; the possibility that we could be the subject of securities class action litigation due to stock price volatility; activities of activist shareholders; and indebtedness terms that limit our ability to pay dividends on common stock.
Given these risks and uncertainties, we caution you not to place undue reliance on forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.
BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2022 | January 1, 2022 | December 31, 2022 | January 1, 2022 | |||||||||
| (In thousands, except per share data) | ||||||||||||
| Net sales | $ | 847,769 | $ | 972,954 | $ | 4,450,214 | $ | 4,277,178 | ||||
| Cost of sales | 696,620 | 779,419 | 3,617,230 | 3,498,751 | ||||||||
| Gross profit | 151,149 | 193,535 | 832,984 | 778,427 | ||||||||
| Gross margin | 17.8 | % | 19.9 | % | 18.7 | % | 18.2 | % | ||||
| Operating expenses (income): | ||||||||||||
| Selling, general, and administrative | 92,000 | 83,459 | 366,305 | 322,205 | ||||||||
| Depreciation and amortization | 7,661 | 6,763 | 27,613 | 28,192 | ||||||||
| Amortization of deferred gains on real estate | (983) | (985) | (3,934) | (3,935) | ||||||||
| Gains from sales of property | — | (7,140) | (144) | (8,427) | ||||||||
| Other operating expenses | 1,326 | 1,118 | 4,057 | 2,315 | ||||||||
| Total operating expenses | 100,004 | 83,215 | 393,897 | 340,350 | ||||||||
| Operating income | 51,145 | 110,320 | 439,087 | 438,077 | ||||||||
| Non-operating expenses (income): | ||||||||||||
| Interest expense, net | 9,280 | 11,816 | 42,272 | 45,507 | ||||||||
| Other expense (income), net | 1,138 | 27 | 2,054 | (1,306) | ||||||||
| Income before provision for income taxes | 40,727 | 98,477 | 394,761 | 393,876 | ||||||||
| Provision for income taxes | 8,741 | 24,857 | 98,585 | 97,743 | ||||||||
| Net income | $ | 31,986 | $ | 73,620 | $ | 296,176 | $ | 296,133 | ||||
| Basic income per share | $ | 3.53 | $ | 7.57 | $ | 31.75 | $ | 30.80 | ||||
| Diluted income per share | $ | 3.50 | $ | 7.30 | $ | 31.51 | $ | 29.99 |
BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31, 2022 | January 1, 2022 | |||
|---|---|---|---|---|
| (In thousands, except share data) | ||||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 298,943 | $ | 85,203 |
| Accounts receivable, less allowances of $3,449 and $4,024, respectively | 251,555 | 339,637 | ||
| Inventories, net | 484,313 | 488,458 | ||
| Other current assets | 42,121 | 31,869 | ||
| Total current assets | 1,076,932 | 945,167 | ||
| Property and equipment, at cost | 360,869 | 318,253 | ||
| Accumulated depreciation | (155,260) | (137,099) | ||
| Property and equipment, net | 205,609 | 181,154 | ||
| Operating lease right-of-use assets | 45,717 | 49,568 | ||
| Goodwill | 55,372 | 47,772 | ||
| Intangible assets, net | 34,989 | 13,603 | ||
| Deferred tax assets | 56,169 | 60,285 | ||
| Other non-current assets | 15,254 | 19,905 | ||
| Total assets | $ | 1,490,042 | $ | 1,317,454 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 151,626 | $ | 180,000 |
| Accrued compensation | 22,556 | 22,363 | ||
| Taxes payable | — | 6,138 | ||
| Finance lease liabilities - short-term | 7,089 | 7,864 | ||
| Operating lease liabilities - short-term | 7,432 | 5,145 | ||
| Real estate deferred gains - short-term | 3,935 | 3,934 | ||
| Pension benefit obligation - short-term | 1,521 | — | ||
| Other current liabilities | 16,518 | 18,347 | ||
| Total current liabilities | 210,677 | 243,791 | ||
| Non-current liabilities: | ||||
| Long-term debt, net of debt issuance costs of $4,057 and $4,701, respectively | 292,424 | 291,271 | ||
| Finance lease liabilities - long-term | 265,986 | 266,853 | ||
| Operating lease liabilities - long-term | 40,011 | 44,526 | ||
| Real estate deferred gains - long-term | 70,403 | 74,206 | ||
| Pension benefit obligation - long-term | — | 11,605 | ||
| Other non-current liabilities | 20,512 | 21,953 | ||
| Total liabilities | 900,013 | 954,205 | ||
| Commitments and contingencies | ||||
| STOCKHOLDERS' EQUITY: | ||||
| Common Stock, $0.01 par value, 20,000,000 shares authorized,<br><br>9,048,603 and 9,725,760 outstanding on December 31, 2022 and January 1, 2022, respectively | 90 | 97 | ||
| Additional paid-in capital | 200,748 | 268,085 | ||
| Accumulated other comprehensive loss | (31,412) | (29,360) | ||
| Accumulated stockholders’ equity | 420,603 | 124,427 | ||
| Total stockholders’ equity | 590,029 | 363,249 | ||
| Total liabilities and stockholders’ equity | $ | 1,490,042 | $ | 1,317,454 |
BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| December 31, 2022 | January 1, 2022 | December 31, 2022 | January 1, 2022 | |||||
| (In thousands) | ||||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 31,986 | $ | 73,620 | $ | 296,176 | $ | 296,133 |
| Adjustments to reconcile net income to cash provided by operations: | ||||||||
| Depreciation and amortization | 7,661 | 6,763 | 27,613 | 28,192 | ||||
| Amortization of debt discount and issuance costs | 330 | (149) | 1,153 | 1,411 | ||||
| Adjustment to debt issuance cost associated with term loan/revolver | — | 1,603 | — | 7,394 | ||||
| Gains from sales of property | — | (7,140) | (144) | (8,427) | ||||
| Amortization of deferred gain from real estate | (983) | (985) | (3,934) | (3,935) | ||||
| Share-based compensation | 3,588 | 1,580 | 9,617 | 6,590 | ||||
| Deferred income tax | 6,228 | 8,140 | 5,289 | 356 | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 122,164 | 5,337 | 101,266 | (45,994) | ||||
| Inventories | 68,280 | (52,020) | 20,759 | (146,350) | ||||
| Accounts payable | (60,005) | (30,386) | (31,808) | 14,837 | ||||
| Taxes payable | (6,750) | (350) | (6,138) | (1,709) | ||||
| Pension contributions | (11,198) | (248) | (11,876) | (1,100) | ||||
| Other current assets | (11,195) | 6,959 | (11,635) | 712 | ||||
| Other assets and liabilities | 4,155 | 5,440 | 3,959 | (3,087) | ||||
| Net cash provided by operating activities | 154,261 | 18,164 | 400,297 | 145,023 | ||||
| Cash flows from investing activities: | ||||||||
| Acquisition of business, net of cash acquired | (63,767) | — | (63,767) | — | ||||
| Proceeds from sale of assets | 316 | 7,675 | 964 | 10,327 | ||||
| Property and equipment investments | (16,807) | (8,991) | (35,886) | (14,415) | ||||
| Net cash used in investing activities | (80,258) | (1,316) | (98,689) | (4,088) | ||||
| Cash flows from financing activities: | ||||||||
| Borrowings on revolving credit facilities | — | 49,074 | — | 949,080 | ||||
| Repayments on revolving credit facilities | — | (270,582) | — | (1,235,724) | ||||
| Repayments on term loan | — | — | — | (43,204) | ||||
| Proceeds from senior secured notes | — | 295,861 | — | 295,861 | ||||
| Common stock repurchase and retirement | — | — | (66,427) | — | ||||
| Debt financing costs | — | (2,648) | — | (5,459) | ||||
| Repurchase of shares to satisfy employee tax withholdings | (746) | (58) | (10,534) | (5,193) | ||||
| Principal payments on finance lease liabilities | (3,678) | (3,478) | (10,907) | (11,175) | ||||
| Net cash provided by (used in) financing activities | (4,424) | 68,169 | (87,868) | (55,814) | ||||
| Net change in cash and cash equivalents | 69,579 | 85,017 | 213,740 | 85,121 | ||||
| Cash and cash equivalents at beginning of period | 229,364 | 186 | 85,203 | 82 | ||||
| Cash and cash equivalents at end of period | $ | 298,943 | $ | 85,203 | $ | 298,943 | $ | 85,203 |
BLUELINX HOLDINGS INC.
RECONCILIATION OF NON-GAAP MEASUREMENTS
(Unaudited)
The following schedule reconciles net income to Adjusted EBITDA:
| Three Months Ended | Twelve Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| December 31, 2022 | January 1, 2022 | December 31, 2022 | January 1, 2022 | |||||
| (In thousands) | ||||||||
| Net income | $ | 31,986 | $ | 73,620 | $ | 296,176 | $ | 296,133 |
| Adjustments: | ||||||||
| Depreciation and amortization | 7,661 | 6,763 | 27,613 | 28,192 | ||||
| Interest expense, net | 9,280 | 10,213 | 42,272 | 38,113 | ||||
| Adjustment to debt issuance cost associated with term loan/revolver(1) | — | 1,603 | — | 7,394 | ||||
| Provision for income taxes | 8,741 | 24,857 | 98,585 | 97,743 | ||||
| Share-based compensation expense | 3,588 | 1,580 | 9,617 | 6,590 | ||||
| Amortization of deferred gains on real estate | (983) | (985) | (3,934) | (3,935) | ||||
| Gain from sales of property(1) | — | (7,140) | (144) | (8,427) | ||||
| Acquisition-related costs(1)(2) | 1,022 | — | 1,255 | 214 | ||||
| Restructuring and other(1)(3) | 1,804 | 1,460 | 6,302 | 2,054 | ||||
| Adjusted EBITDA | $ | 63,099 | $ | 111,971 | $ | 477,742 | $ | 464,071 |
(1) Reflects non-recurring items of approximately $2.8 million in beneficial items to the current quarterly period and approximately $4.1 million in non-beneficial items to the prior quarterly period. For the current fiscal year period, reflects non-recurring, beneficial items of approximately $7.4 million and the prior fiscal year period reflects $1.2 million of non-recurring, beneficial items.
(2) Reflects primarily legal, professional, technology and other integration costs.
(3) Reflects costs related to our restructuring efforts, such as severance, net of other one-time non-operating items.
The following tables reconciles net income and diluted income per share to adjusted net income and adjusted diluted income per share:
| Three Months Ended | Twelve Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| December 31, 2022 | January 1, 2022 | December 31, 2022 | January 1, 2022 | |||||
| (In thousands, except per share data) | ||||||||
| Net income | $ | 31,986 | $ | 73,620 | $ | 296,176 | $ | 296,133 |
| Adjustments: | ||||||||
| Share-based compensation expense | 3,588 | 1,580 | 9,617 | 6,590 | ||||
| Amortization of deferred gains on real estate | (983) | (985) | (3,934) | (3,935) | ||||
| Gain from sales of property | — | (7,140) | (144) | (8,427) | ||||
| Acquisition-related costs | 1,022 | — | 1,255 | 214 | ||||
| Restructuring and other | 1,804 | 1,460 | 6,302 | 2,054 | ||||
| Tax impacts of reconciling items above (1) | (1,168) | 1,281 | (3,274) | 869 | ||||
| Adjusted net income | $ | 36,249 | $ | 69,816 | $ | 305,998 | $ | 293,498 |
| Basic EPS | $ | 3.53 | $ | 7.57 | $ | 31.75 | $ | 30.80 |
| Diluted EPS | $ | 3.50 | $ | 7.30 | $ | 31.51 | $ | 29.99 |
| Weighted average shares outstanding - Basic | 9,036 | 9,724 | 9,328 | 9,615 | ||||
| Weighted average shares outstanding - Diluted | 9,128 | 10,090 | 9,398 | 9,876 | ||||
| Non-GAAP Adjusted Basic EPS | $ | 4.01 | $ | 7.18 | $ | 32.80 | $ | 30.52 |
| Non-GAAP Adjusted Diluted EPS | $ | 3.97 | $ | 6.91 | $ | 32.55 | $ | 29.71 |
(1) Tax impact calculated based on the effective tax rate for the respective three-month periods and twelve-month periods presented.
The following schedules presents our Adjusted EBITDA margin as a percentage of net sales:
| Three Months Ended | Twelve Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2022 | January 1, 2022 | December 31, 2022 | January 1, 2022 | |||||||||
| (In thousands) | ||||||||||||
| Net sales | $ | 847,769 | $ | 972,954 | $ | 4,450,214 | $ | 4,277,178 | ||||
| Adjusted EBITDA | 63,099 | 111,971 | 477,742 | 464,071 | ||||||||
| Adjusted EBITDA margin | 7.4 | % | 11.5 | % | 10.7 | % | 10.8 | % |
The following schedules presents our revenues disaggregated by specialty and structural product category.
| Three Months Ended | Twelve Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2022 | January 1, 2022 | December 31, 2022 | January 1, 2022 | |||||||||
| (In thousands) | ||||||||||||
| Net sales by product category | ||||||||||||
| Specialty products | $ | 591,538 | $ | 641,470 | $ | 2,871,628 | $ | 2,520,305 | ||||
| Structural products | 256,231 | 331,484 | 1,578,586 | 1,756,873 | ||||||||
| Total net sales | $ | 847,769 | $ | 972,954 | $ | 4,450,214 | $ | 4,277,178 | ||||
| Gross profit by product category | ||||||||||||
| Specialty products | $ | 124,589 | $ | 140,297 | $ | 640,370 | $ | 561,520 | ||||
| Structural products(1) | 26,560 | 53,238 | 192,614 | 216,907 | ||||||||
| Total gross profit | $ | 151,149 | $ | 193,535 | $ | 832,984 | $ | 778,427 | ||||
| Gross margin % by product category | ||||||||||||
| Specialty products | 21.1 | % | 21.9 | % | 22.3 | % | 22.3 | % | ||||
| Structural products(1) | 10.4 | % | 16.1 | % | 12.2 | % | 12.3 | % | ||||
| Total gross margin % | 17.8 | % | 19.9 | % | 18.7 | % | 18.2 | % |
(1) For additional information about our lower of cost or net realizable value (LC-NRV) adjustments, see our Form 10-K for the fiscal period ended December 31, 2022.
The following schedule presents Net Debt and the Net Leverage Ratio for the twelve months ended:
| Twelve Months Ended | ||||
|---|---|---|---|---|
| December 31, 2022 | January 1, 2022 | |||
| (In thousands) | ||||
| Finance lease liabilities - short term | $ | 7,089 | $ | 7,864 |
| Long term debt (1) | 300,000 | 300,000 | ||
| Finance lease liabilities - long term | 265,986 | 266,853 | ||
| Total debt | 573,075 | 574,717 | ||
| Less: available cash | 298,943 | 85,203 | ||
| Net Debt | 274,132 | 489,514 | ||
| Twelve month ended Adjusted EBITDA | $ | 477,742 | $ | 464,071 |
| Net Leverage Ratio | 0.6x | 1.1x |
(1) For the period ended December 31, 2022, our long-term debt is comprised of $300.0 million of senior-secured notes issued in October 2021. These notes are presented under the long-term debt caption of our balance sheet at $292.4 million which is net of their discount of $3.5 million and the combined carrying value of our debt issuance costs of $4.1 million. For the period ended January 1, 2022, our long-term debt presented in this table is the balance presented on our balance sheet of $291.3 million, which is net of their discount of $4.0 million and the combined carrying value of our debt issuance costs of $4.7 million. Our senior secured notes are presented in this table at their face value for the purposes of calculating our net leverage ratio.
The following schedule presents free cash flow:
| Three Months Ended | Twelve Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| December 31, 2022 | January 1, 2022 | December 31, 2022 | January 1, 2022 | |||||
| Net cash provided by operating activities | $ | 154,261 | $ | 18,164 | $ | 400,297 | $ | 145,023 |
| Less: property and equipment investments | (16,807) | (8,991) | (35,886) | (14,415) | ||||
| Free cash flow | $ | 137,454 | $ | 9,173 | $ | 364,411 | $ | 130,608 |
13
exhibit992-conferencecal
BlueLinx Q4 & Full Year 2022 Results Delivering What Matters February 22, 2023 © BlueLinx 2023. All Rights Reserved. 1
This presentation contains forward-looking statements. Forward-looking statements include, without limitation, any statement that predicts, forecasts, indicates or implies future results, performance, liquidity levels or achievements, and may contain the words “believe,” “anticipate,” “could”, “expect,” “estimate,” “intend,” “may”, “project,” “plan,” “should”, “will”, “will be,” “will likely continue,” “will likely result””, “would” or words or phrases of similar meaning. The forward-looking statements in this presentation include statements about our confidence in the Company’s long-term growth strategy; our ability to capitalize on supplier-led price increases and our value-added services; our areas of focus and management initiatives; the demand outlook for construction materials and expectations regarding new home construction, repair and remodel activity and continued investment in existing and new homes; our positioning for long-term value creation; our efforts and ability to generate profitable growth; our ability to increase net sales in specialty product categories; our ability to generate profits and cash from sales of specialty products; our multi-year capital allocation plans; our ability to manage volatility in wood-based commodities; our improvement in execution and productivity; our efforts and ability to maintain a disciplined capital structure and capital allocation strategy; our ability to maintain a strong balance sheet; our ability to focus on operating improvement initiatives and commercial excellence; and whether or not the Company will continue any share repurchases. Forward-looking statements in this presentation are based on estimates and assumptions made by our management that, although believed by us to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties that may cause our business, strategy, or actual results to differ materially from the forward-looking statements. These risks and uncertainties include those discussed in greater detail in our filings with the Securities and Exchange Commission. We operate in a changing environment in which new risks can emerge from time to time. It is not possible for management to predict all of these risks, nor can it assess the extent to which any factor, or a combination of factors, may cause our business, strategy, or actual results to differ materially from those contained in forward-looking statements. Factors that may cause these differences include, among other things: inflation; pricing and product cost variability; volumes of product sold; competition; changes in the supply and/or demand for products that we distribute; the cyclical nature of the industry in which we operate; housing market conditions; consolidation among competitors, suppliers, and customers; disintermediation risk; loss of products or key suppliers and manufacturers; our dependence on international suppliers and manufacturers for certain products; potential acquisitions and the integration and completion of such acquisitions; business disruptions; effective inventory management relative to our sales volume or the prices of the products we distribute; information technology security risks and business interruption risks; the ability to attract, train, and retain highly qualified associates and other key personnel while controlling related labor costs; exposure to product liability and other claims and legal proceedings related to our business and the products we distribute; natural disasters, catastrophes, fire, wars, or other unexpected events; successful implementation of our strategy; wage increases or work stoppages by our union employees; costs imposed by federal, state, local, and other regulations; compliance costs associated with federal, state, and local environmental protection laws; the lingering effect of global pandemics such as COVID-19 and other widespread public health crisis and their effects on our industry; fluctuations in our operating results; our level of indebtedness and our ability to incur additional debt to fund future needs; the covenants of the instruments governing our indebtedness limiting the discretion of our management in operating the business; variable interest rate risk under certain indebtedness; the fact that we have consummated certain sale leaseback transactions with resulting long-term non-cancelable leases, many of which are or will be finance leases; the fact that we lease many of our distribution centers, and we would still be obligated under these leases even if we close a leased distribution center; inability to raise funds necessary to finance a required repurchase of our senior secured notes; a lowering or withdrawal of debt ratings; changes in our product mix; increases in fuel and other energy prices; availability of third-part freight providers; changes in insurance-related deductible/retention reserves based on actual loss experience; the possibility that the value of our deferred tax assets could become impaired; changes in our expected annual effective tax rate could be volatile; changes in actuarial assumptions for our pension plan; the costs and liabilities related to our participation in multi-employer pension plans could increase; the risk that our cash flows and capital resources may be insufficient to service our existing or future indebtedness; changes in, or interpretation of, accounting principles; the possibility that we could be the subject of securities class action litigation due to stock price volatility; activities of activist shareholders; and indebtedness terms that limit our ability to pay dividends on common stock. Given these risks and uncertainties, we caution you not to place undue reliance on forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law. Non-GAAP Financial Measures. BlueLinx reports its financial results in accordance with GAAP. The Company also believes that presentation of certain non- GAAP measures may be useful to investors and may provide a more complete understanding of the factors and trends affecting the business than using reported GAAP results alone. Any non-GAAP measures used herein are reconciled to their most directly comparable GAAP measures herein or in the financial tables accompanying this presentation. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. Immaterial Rounding Differences. Immaterial rounding adjustments and differences may exist between slides, press releases, and previously issued presentations. This presentation and the associated remarks made during this conference call are integrally related and are intended to be presented and understood together. 2 Safe Harbor Statement
3 Opening Opening Remarks Dwight Gibson, President & CEO
4 ▪ Net sales of $4.5b / up 4% year-over-year ▪ Adjusted EBITDA of $478m – an all-time high ▪ Operating Cash Flow of $400m, Free Cash Flow of $364m ▪ Adjusted EBITDA of $63m ▪ Generated operating cash of $154m – a record level ▪ Specialty product sales comprised 70% of sales and 82% of gross profit in Q4 2022 ▪ Acquired Vandermeer on October 3, 2022, for $67m ▪ Invested $36m in capital expenditures during the year ▪ Repurchased 9% of outstanding shares for $66m in 2022 ▪ 0.6x net leverage at the end of Q4 2022 ▪ $645m of liquidity – including $299 million of cash on-hand ▪ $299m of cash on hand + $346m of revolver capacity ✓ Delivered strong full year 2022 results ✓ Solid Q4 results highlighted by record cash generation ✓ Remain focused on specialty product growth ✓ Executed strategic capital allocation actions ✓ Further strengthened our financial position DELIVERING WHAT MATTERS ✓ Delivered strong full year 2022 results ✓ Solid Q4 results highlighted by record cash generation ✓ Remain focused on specialty product sales growth ✓ Executed strategic capital allocation actions ✓ Further strengthened our financial position Note: see appendix for reconciliations to all non-GAAP measures
▪ Net sales of $848m, down 13% year-over-year ❑ Q4 21 included benefit from very strong demand and high commodity prices ▪ Gross profit of $151m, down 22% year-over-year ❑ 17.8% of net sales ❑ 82% of gross profit from specialty products ▪ Gross margin of 17.8%, down 210 bps year-over-year ❑ 21.1% specialty gross margin ❑ 10.4% structural gross margin ▪ Net Income of $32m and Diluted EPS of $3.50; Adjusted Net Income of $36m and Diluted EPS of $3.97 ❑ $0.31 and $0.35, respectively, per share benefit from share repurchases ▪ Adjusted EBITDA of $63m, or 7.4% of sales ▪ Generated operating cash of $154m, up $136m year-over-year ❑ Free Cash Flow of $137m Specialty Products 82% Structural Products 18% Gross Profit by Product Category Note: see appendix for reconciliations to all non-GAAP measures Explosive profitable growth with a highly engaged team 5 FOURTH QUARTER 2022 RESULTS Specialty Products 70% Structural Products 30% Sales by Product CategoryQ4 22 solid despite market headwinds, YoY variances driven by strong Q4 21
FULL YEAR 2022 RESULTS ▪ Net sales of $4.5b, up 4% year-over-year ❑ Specialty product sales increased 14% to $2.9b ▪ Gross profit of $833m, up 7% year-over-year ❑ 18.7% of net sales ❑ 77% of gross profit from specialty products ▪ Gross margin of 18.7%, up 50 bps year-over-year ❑ 22.3% specialty gross margin ❑ 12.2% structural gross margin ▪ Net Income of $296m and Diluted EPS of $31.51; Adjusted Net Income of $306m and Diluted EPS of $32.55 ❑ $1.60 and $1.65, respectively, per share benefit from share repurchases ▪ Adjusted EBITDA of $478m, or 10.7% of sales ▪ Generated operating cash of $400m, up $255m year-over-year ❑ Free Cash Flow of $364m 6 $3.1b $4.3b $4.5b 15.4% 18.2% 18.7% FY20 FY21 FY22 Sales and Gross Margin % Net Sales Gross Margin % $170.4m $464.1m $477.7m 5.5% 10.8% 10.7% FY20 FY21 FY22 Adj EBITDA and Adj EBITDA % Adj EBITDA Adj EBITDA % Note: see appendix for reconciliations to all non-GAAP measures Excellent full year results with increased sales and strong cash flow
Overall improvements: ▪ Rigorous structural inventory management: ❑ Wood-based inventory reduced by 67% since Q1 20 ▪ Disciplined pricing and purchasing ▪ Lower repair and maintenance expense due to Capex Note: reduction in wood-based inventory of ~67% is based on footage and occurred from Q1 2020 to Q4 2022 Note: see appendix for reconciliations to all non-GAAP measures Q4 2022: ▪ Strong sales in a slowing market environment ▪ Adjusted EBITDA margin of 7%+ ▪ Net leverage reduced to 0.6x from 1.1x in Q4 21 7 QUARTERLY RESULTS $613 $865 $973 $848 1.8% 4.5% 11.5% 7.4% 4Q19 4Q20 4Q21 4Q22 Net Sales Adj EBITDA % 9.2x 3.5x 1.1x 0.6x Net leverage ($ millions)
▪ Home affordability under pressure ❑ Mortgage rates have more than doubled over the past year ❑ Home price appreciation ❑ Broad-based inflation ▪ New home starts expected to slow in 2023 ❑ U.S. new home supply now at ~9 months(1) ❑ Builders’ confidence rose to 42, still below 20-year average(2) ❑ Single-family housing starts predicted to decline double-digits in 2023(3) ▪ Repair and remodel rate of growth expected to slow during 2023, per LIRA Index(4) ❑ Record home equity levels ❑ Remote work flexibility ❑ Average age of existing homes ~40 years old(5) BLUELINX SALES BY END MARKET 45% 40% 15% New Home ConstructionRepair & Remodel Commercial Note: management’s estimate of 2019 sales by end market for two-step distribution of building materials (1) Source: U.S. Census Bureau. The months' supply indicates how long the current for-sale inventory would last given the current sales rate if no additional new houses were built (2) Source: NAHB Housing Market Index (HMI) is based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. The survey asks respondents to rate market conditions for the sale of new homes at the present time and in the next six months as well as the traffic of prospective buyers of new homes (3) Source: . Forecast: John Burns Real Estate Consulting, LLC subject limitations and disclaimers – not for redistribution (4) Source: Joint Center for Housing Studies at Harvard University. The Leading Indicator of Remodeling Activity (LIRA) provides a short-term outlook of national home improvement and repair spending to owner-occupied homes. (5) Source: American Community Survey completed in 2019. 8 U.S. HOUSING INDUSTRY
*As of February 17, 2023 ▪ Average lumber and panel prices declined 23% and 21%, respectively, from Q3 22 to Q4 22 ▪ From the end of December to mid-February, lumber and panels prices increased 15% and 7%, respectively ▪ Higher input costs due to widespread inflation ▪ Minimal supply constraints across our key product categories Average quarterly prices for framing lumber ($/MBF) and structural panels ($/MSF) (per RISI(1)): (1) Source: Random Lengths, company analysis; Feb-23 data thru 2/17/23 9 U.S. HOUSING INDUSTRY $987 $1,243 $466 $702 $1,244 $797 $587 $449 $410 $1,003 $1,566 $766 $715 $1,232 $874 $671 $528 $488 $300 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23* Quarterly Average Price of Framing Lumber Quarterly Average Price for Structural Panels Supply/Cost Environment
10 Financial Review Kelly Janzen, Chief Financial Officer
▪ Net sales decreased 13% to $848m ❑ Specialty product sales down 8% ❑ Structural product sales down 23% ▪ Gross Margin of 17.8%, down 210 bps ❑ Due primarily to lower structural product margin as a result of lower price for wood-based commodities ❑ Specialty margin down slightly ▪ Adjusted Diluted EPS of $3.97 ❑ Includes $0.35 per share benefit from lower share count related to share repurchases ▪ Adjusted EBITDA of $63m, down 44% ❑ Adjusted EBITDA margin of 7.4% ▪ Cash From Operations increased $136m to $154m ❑ Capital Expenditures of $17m ❑ Free Cash Flow of $137m, up $128m 11 $ millions, except per share data Q4 2022 Q4 2021 Variance vs. 2022 Q4 2020 Variance vs. 2022 Net sales $848 $973 (13%) $865 (2%) Gross Profit $151 $194 (22%) $124 +22% Gross Margin % 17.8% 19.9% -210 bps 14.4% +340 bps Adjusted Net Income $36 $70 (48%) $21 +75% Adjusted Diluted Earnings per Share $3.97 $6.91 (43%) $2.13 +86% Adjusted EBITDA $63 $112 (44%) $39 +64% Adjusted EBITDA % 7.4% 11.5% -410 bps 4.5% +290 bps Free Cash Flow $137 $9 +1,398% ($21) n/a Net Leverage 0.6x 1.1x (0.5x) 3.5x (2.9x) FOURTH QUARTER 2022 RESULTS Note: All comparisons versus the prior-year period unless otherwise noted; see Appendix for reconciliations for all non-GAAP figures Note: Q4 20 provided for comparison purposes due to Q4 21 impacted by very strong demand and high commodity prices Q4 year-over-year analysis
Note: All comparisons versus the prior-year period unless otherwise noted; see Appendix for reconciliations for all non-GAAP figures $ millions, except per share data 2022 2021 Variance Net sales $4.5b $4.3b +4% Gross Profit $833 $778 +7% Gross Margin % 18.7% 18.2% +50 bps Adjusted Net Income $306 $294 +4% Adjusted Diluted Earnings Per Share $32.55 $29.71 +10% Adjusted EBITDA $478 $464 +3% Adjusted EBITDA % 10.7% 10.8% -10 bps Free Cash Flow $364 $131 +179% Net Leverage 0.6x 1.1x (0.5x) 12 FULL YEAR 2022 RESULTS ▪ Net sales increased 4% to $4.5b ❑ Specialty product sales grew 14% ❑ Structural product sales down 10% ▪ Gross Margin of 18.7%, up 50 bps ❑ Driven by improved specialty gross profit due to pricing discipline ▪ Adjusted Diluted EPS of $32.55, up 10% ❑ Includes $1.65 per share benefit from lower share count related to share repurchases ▪ Adjusted EBITDA of $478m, up 3% ❑ Adjusted EBITDA margin of 10.7% ▪ Cash from Operations of $400m, up 176% ❑ Increased $255m vs prior year period ❑ Capital expenditures of $36m ❑ Free Cash Flow of $364m FY 2022 year-over-year analysis
Days Sales of Inventory (DSI) Number of Days Operating Working Capital Management(1) Dollars in millions Cash Cycle Days(2) Number of Days ▪ Significant return on working capital, 54% for FY 2022 ▪ $34m decrease in operating working capital from Q3 22 driven primarily by lower accounts receivable and lower inventory ▪ Inventory decrease year over year due to rigorous inventory management Note: See Appendix for reconciliations for all non-GAAP figures (1) Operating working capital includes accounts receivable, inventory, accounts payable and cash on hand (2) Cash Cycle Days = Days Sales Outstanding plus Days Sales of Inventory less Days Payable Outstanding 43 39 35 48 54 47 50 58 67 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 13 WORKING CAPITAL 54 50 45 60 63 58 63 68 76 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 $471 $576 $636 $571 $733 $904 $866 $918 $883 0% 10% 20% 30% 40% 50% 60% 70% 80% $200 $300 $400 $500 $600 $700 $800 $900 $1,000 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Total Operating Working Capital Return on Working Capital
$499 $563 $675 $641 $641 $768 $788 $724 $592 17.4% 19.3% 24.4% 23.0% 21.9% 24.0% 22.9% 20.9% 21.1% 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 ($ millions) GM Rate Net sales ▪ Net sales down 8%, or $50m ▪ Volume down 14% ▪ Maintained pricing discipline ▪ Specialty sales increased to 70% of total ▪ Gross margin of 21.1%, down 80 bps ▪ Strong margin due to strategic pricing ▪ Gross margin expansion of 20 bps from Q3 22 ▪ Gross profit of $125m Q4 year-over-year analysis 14 SPECIALTY PRODUCTS Q4 2022 RESULTS
($ millions) $367 $462 $633 $330 $331 $534 $452 $336 $256 10.2% 15.5% 13.6% 1.7% 16.1% 20.0% 4.7% 11.3% 10.4% 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 GM Rate Net sales ▪ Net sales decreased 23%, or $75m ▪ Reflects year-over-year lower average pricing for commodities: ❑ 36% decrease in average price of lumber ❑ 26% decrease in average price of panels ▪ Volume down 11% ▪ Gross profit of $27m, down 50% ▪ Due to lower prices for commodity lumber and panels ▪ Gross margin of 10.4%, down 570 bps ▪ Margin reflects benefits of continued inventory management and the impact of lower prices for commodity lumber and panels year-over-year ▪ Average historical margin of 9%(1) Q4 year-over-year analysis 15 STRUCTURAL PRODUCTS Q4 2022 RESULTS (1) Average historical margin of 9% from 2017-2020
* $350 million revolver less $4 million of reserves and letters of credit; $346 million of net availability Note: see appendix for reconciliations to all non-GAAP measures ▪ At the end of Q4 2022: ▪ Net leverage at 0.6x ▪ Net debt at $274m ▪ Cash on hand of $299m ▪ Total available liquidity of $645m ▪ $36m of Capex spent in 2022 on facilities and fleet ▪ No material debt maturities until 2029 $273 $275 $273 $288 $43 $300 Q4 2020 Q4 2021 Q4 2022 Finance Leases Revolver Term Loan Senior Notes $605 ($ millions) $575 $573 Gross Debt Structure $350* $300 2022 2023 2024 2025 2026 2027 2028 2029 ABL @ ~2% $300m Senior Notes @ 6% undrawn revolver Debt Maturity Schedule Note: debt maturity schedule does not include finance lease obligations 9.2x 3.5x 1.1x 0.6x Q4 2019 Q4 2020 Q4 2021 Q4 2022 Net Leverage 16 BALANCE SHEET $300
INVEST IN THE BUSINESS STRATEGIC ACQUISITIONS SHARE REPURCHASES OPERATING CASH FLOW GUIDING PRINCIPLES ▪ Maintain strong balance sheet and financial stability ▪ Long-term net leverage could increase to at or around 3.0x when considering growth ▪ Invest in business through economic cycles ▪ Acquisitions aligned to strategy ▪ Opportunistic share repurchases FREE CASH FLOW RETURN TO SHAREHOLDERSGROWTH AND MARGIN EXPANSION 17 CAPITAL ALLOCATION FRAMEWORK
Dwight Gibson, President and CEO Dwight Gibson, President and CEO Executive Summary 18
BlueLinx: Delivering What Matters Put people First. Invest in the Future. Win Together. 1 2 3 Attractive market BlueLinx is well positioned to grow Leveraging growth ▪ >$40b addressable market(1) ▪ Fragmented competition ▪ Optimizing productivity ▪ Driving performance (1) Source: Estimated addressable market and market growth CAGR based on Principia Consulting, LLC ▪ ~10% market share ▪ Strong financial position 19 BLUELINX
Accelerating Growth Accelerating growth with our best customers and our best specialty products Optimizing Productivity Optimizing productivity thru distribution center optimization and procurement excellence Driving Performance Building an extraordinary team, creating a performance- based culture Creating Value Creating value thru profitable growth and disciplined capital allocation 20 DELIVERING WHAT MATTERS North America’s Preeminent Building Products Distributor
21 ▪ In 2022 we delivered exceptional results: ✓ Net sales of $4.5b, up 4% year-over-year ✓ Adjusted EPS of $32.55, up 10% year-over-year ✓ Adjusted EBITDA of $478m, up 3% year-over-year ✓ Operating cash of $400m, up ~3x year-over-year ▪ Closely monitoring the US housing industry and broader economic environment ▪ Our fortified balance sheet and ample liquidity positions us well to navigate a softer demand environment and provides opportunities to execute our strategy ▪ Focused on accelerating growth in specialty products, optimizing productivity and driving world-class performance Note: see appendix for reconciliations to all non-GAAP measures DELIVERING WHAT MATTERS
Appendix 22
BlueLinx reports its financial results in accordance with GAAP. The Company also believes that presentation of certain non-GAAP measures may be useful to investors and may provide a more complete understanding of the factors and trends affecting the business than using reported GAAP results alone. Any non-GAAP measures used herein are reconciled to their most directly comparable GAAP measures herein or in the financial tables accompanying this presentation. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. The Company further cautions that its non-GAAP measures, as used herein, are not necessarily comparable to other similarly titled measures of other companies due to differences in methods of calculation. Adjusted EBITDA and Adjusted EBITDA Margin. BlueLinx defines Adjusted EBITDA as an amount equal to net income (loss) plus interest expense and all interest expense related items, income taxes, depreciation and amortization, and further adjusted for certain non-cash items and other special items, including compensation expense from share based compensation, one-time charges associated with the legal, consulting, and professional fees related to our merger and acquisition activities, gains or losses on sales of properties, amortization of deferred gains on real estate, and expense associated with our restructuring activities, such as severance, in addition to other significant and/or one-time, nonrecurring, non-operating items. The Company presents Adjusted EBITDA because it is a primary measure used by management to evaluate operating performance. Management believes this metric helps to enhance investors’ overall understanding of the financial performance and cash flows of the business. Management also believes Adjusted EBITDA is helpful in highlighting operating trends. Adjusted EBITDA is frequently used by securities analysts, investors, and other interested parties in their evaluation of companies, many of which present an Adjusted EBITDA measure when reporting their results. We determine our Adjusted EBITDA Margin, which we sometimes refer to as our Adjusted EBITDA as a percentage of net sales, by dividing our Adjusted EBITDA for the applicable period by our net sales for the applicable period. We believe that this ratio is useful to investors because it more clearly defines the quality of earnings and operational efficiency of translating sales to profitability. Our Adjusted EBITDA and Adjusted EBITDA Margin are not presentations made in accordance with GAAP and are not intended to present superior measures of our financial condition from those measures determined under GAAP. Adjusted EBITDA and Adjusted EBITDA Margin, as used herein, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. These non-GAAP measures are reconciled in the “Reconciliation of Non- GAAP Measurements” table later in this presentation. Adjusted Net Income and Adjusted Earnings Per Share. BlueLinx defines Adjusted Net Income as Net Income adjusted for certain non-cash items and other special items, including compensation expense from share based compensation, one- time charges associated with the legal, consulting, and professional fees related to our merger and acquisition activities, gains or losses on sales of properties, amortization of deferred gains on real estate, and expense associated with our restructuring activities, such as severance, in addition to other significant and/or one-time, nonrecurring, non-operating items, further adjusted for the tax impacts of such reconciling items. BlueLinx defines Adjusted Earnings Per Share (basic and/or diluted) as the Adjusted Net Income for the period divided by the weighted average outstanding shares (basic and/or diluted) for the periods presented. We believe that Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) are useful to investors to enhance investors’ overall understanding of the financial performance of the business. Management also believes Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) are helpful in highlighting operating trends. Our Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) are not presentations made in accordance with GAAP and are not intended to present superior measures of our financial condition from those measures determined under GAAP. Adjusted Net Income and Adjusted Earnings Per Share (basic or diluted), as used herein, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. These non-GAAP measures are reconciled in the “Reconciliation of Non-GAAP Measurements” table later in this presentation. Free Cash Flow. BlueLinx defines free cash flow as net cash provided by operating activities less total capital expenditures. Free cash flow is a measure used by management to assess our financial performance, and we believe it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures that can be used for, among other things, investment in our business, strengthening our balance sheet, and repayment of our debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. Free cash flow is not a presentation made in accordance with GAAP and is not intended to present a superior measure of financial condition from those determined under GAAP. Free cash flow, as used herein, is not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. This non-GAAP measure is reconciled in the “Reconciliation of Non-GAAP Measurements” table later in this presentation. Net Debt and Net Leverage Ratio. BlueLinx calculates net debt as its total short- and long-term debt, including outstanding balances under our term loan and revolving credit facility and the total amount of its obligations under financing leases, less cash and cash equivalents. We believe that net debt is useful to investors because our management reviews our net debt as part of its management of overall liquidity, financial flexibility, capital structure and leverage, and creditors and credit analysts monitor our net debt as part of their assessments of our business. We determine our overall net leverage ratio by dividing our net debt by trailing twelve-month Adjusted EBITDA. We believe that this ratio is useful to investors because it is an indicator of our ability to meet our future financial obligations. In addition, the ratio is a measure that is frequently used by investors and creditors. Our net debt and overall net leverage ratio are not presentations made in accordance with GAAP and are not intended to present a superior measure of our financial condition from measures and ratios determined under GAAP. In addition, our net debt and overall net leverage ratio, as used herein, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. This non-GAAP measure is reconciled in the “Reconciliation of Non- GAAP Measurements” table later in this presentation. 23 Non-GAAP Measures
Total U.S. Single Family Housing Starts (SFHS) Housing starts in thousands (1) 25-year average $0 $100 $200 $300 $400 $500 1 Q 0 0 1 Q 0 1 1 Q 0 2 1 Q 0 3 1 Q 0 4 1 Q 0 5 1 Q 0 6 1 Q 0 7 1 Q 0 8 1 Q 0 9 1 Q 1 0 1 Q 1 1 1 Q 1 2 1 Q 1 3 1 Q 1 4 1 Q 1 5 1 Q 1 6 1 Q 1 7 1 Q 1 8 1 Q 1 9 1 Q 2 0 1 Q 2 1 1 Q 2 2 1 Q 2 … LIRA Remodeling Activity Index TTM Moving Total - Dollars in billions (3) Total U.S. Monthly Supply of New Houses Months of inventory (2) 30 Year Fixed Mortgage Rates As of February 2023 (4) 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 1 9 8 0 1 9 8 2 1 9 8 4 1 9 8 6 1 9 8 8 1 9 9 0 1 9 9 2 1 9 9 4 1 9 9 6 1 9 9 8 2 0 0 0 2 0 0 2 2 0 0 4 2 0 0 6 2 0 0 8 2 0 1 0 2 0 1 2 2 0 1 4 2 0 1 6 2 0 1 8 2 0 2 0 2 0 2 2 2 0 2 4 P (1) Source: Historical data is U.S. Census Bureau; Forecast from John Burns Real Estate Consulting, LLC subject limitations and disclaimers – not for redistribution (2) Source: U.S. Census Bureau. The months' supply indicates how long the current for-sale inventory would last given the current sales rate if no additional new houses were built. (3) Source: Joint Center for Housing Studies at Harvard University. The Leading Indicator of Remodeling Activity (LIRA) provides a short-term outlook of national home improvement and repair spending to owner-occupied homes. (4) Source: Historical data is Freddie Mac; Forecast: John Burns Real Estate Consulting, LLC subject limitations and disclaimers – not for redistribution. remodeling spend expected to grow modestly in 2023 mortgage rates expected to remain below historical averages 0 2 4 6 8 10 12 14 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 ~9 months of home inventory - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 E 2 0 2 4 E 2 0 2 5 E starts expected to be below 25-year average but above 2009-2011 levels 24 MACRO TRENDS
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Ja n -8 2 A p r- 8 4 Ju l- 8 6 O ct -8 8 Ja n -9 1 A p r- 9 3 Ju l- 9 5 O ct -9 7 Ja n -0 0 A p r- 0 2 Ju l- 0 4 O ct -0 6 Ja n -0 9 A p r- 1 1 Ju l- 1 3 O ct -1 5 Ja n -1 8 A p r- 2 0 Ju l- 2 2 Household Owners’ Equity Levels in Real Estate Dollars in billions (1) (1) Source: Historical data is Board of Governors of the Federal Reserve System (US), Households; Owners' Equity in Real Estate, Level [OEHRENWBSHNO], retrieved from FRED, Federal Reserve Bank of St. Louis record levels of home equity 25 MACRO TRENDS
Framing Lumber Composite Index As of February 2023(1) Structural Panel Composite Index As of February 2023(2) ▪ Prices declined throughout Q4; from the beginning of October to the end of December, lumber and panels prices decreased 23% and 21%, respectively ▪ At the end of Q4, lumber and panel prices were $380/MBF and $473/MSF, respectively ▪ As of 2/17/23, average Feb-23 pricing was $441/MBF for lumber and $501/MSF for panels ▪ From 12/30/22 to 2/17/23, lumber and panels prices have risen 15% and 7%, respectively - 200 400 600 800 1,000 1,200 1,400 1,600 Index Price TTM Avg. Index Price - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Index Price TTM Avg. Index Price Feb-23 framing lumber prices are 26% lower than the 5-year average and 37% below the TTM rolling average Feb-23 structural panel prices are 22% lower the 5-year average and 35% below to the TTM rolling average (1) Source: Random Lengths, company analysis; Feb-23 data thru 2/17/23 (2) Source: Random Lengths; company analysis; Feb-23 data thru 2/17/23 26 WOOD-BASED COMMODITY PRICE TRENDS
Net sales, gross profit dollars, gross profit percentages, sales mix, and gross profit mix by product category by fiscal quarter, Q4 2020 – Q4 2022 In millions where dollars are presented 27 Non-GAAP Reconciliation / supplementary financial information
Adjusted EBITDA reconciliation by fiscal quarter, Q4 2019 – Q4 2022 In millions where dollars are presented 28 Non-GAAP Reconciliation / supplementary financial information
Adjusted EBITDA reconciliation for the twelve-month periods, Q4 2022 – Q4 2019 In millions where dollars are presented 29 Non-GAAP Reconciliation / supplementary financial information
Free cash flow for the three and twelve months ended, Q4 2022 and Q4 2021 In millions where dollars are presented 30 Non-GAAP Reconciliation / supplementary financial information
Working capital by fiscal quarter, Q4 2020 – Q4 2022 In millions where dollars are presented 31 Non-GAAP Reconciliation / supplementary financial information
Net leverage ratio for the trailing twelve months ended fiscal December 2022 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 32 Non-GAAP Reconciliation / supplementary financial information
Net leverage ratio for the trailing twelve months ended fiscal December 2021 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 33 Non-GAAP Reconciliation / supplementary financial information
Net leverage ratio for the trailing twelve months ended fiscal December 2020 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 34 Non-GAAP Reconciliation / supplementary financial information
Net leverage ratio for the trailing twelve months ended fiscal December 2019 with accompanying Adjusted EBITDA reconciliation In millions where dollars are presented 35 Non-GAAP Reconciliation / supplementary financial information
Adjusted Net Income and Adjusted Diluted Income per Share reconciliation for the three and twelve-month periods ended December 2022, 2021, and 2020 In thousands where dollars are presented, except per share data 36 Non-GAAP Reconciliation / supplementary financial information (1) Tax impact calculated based on the effective tax rate for the respective three-month periods and twelve-month periods presented.